TOTAL COST OF OWNERSHIP
TOTAL COST OF OWNERSHIP: The total cost of ownership evaluates difference between purchase price and long term cost. It comprises of OPERATIONS, MAINTENANCE,DOWNTIME,PRODUCTION ,REMAINING VALUE. Formula: I+M-R=TCO (Total cost of ownership) Following five factors should follow by Baskin Robbin’s by keeping TCO in mind are highlighted: 1.Initial Cost: The initial cost is self explanatory from the word that it is the price we focus when we see the tag price. Initial cost appears on price tag. The company must focus on the assets and purchasing cost while initial purchase of the material/product/ services. Because this cost comprises all the related cost like maintenance, operations, production, downtime, risks to maintain TCO. 2.Operational Cost: The cost which Baskin Robbin’s company use to install any machine and any services or software is the operational cost. They must focus while maintaining any operations from their suppliers. 3.Maintenance...